Edible Oil Complex Updates as on 17092021

*Crude Palm Oil prices on MCX remained flat in one week period showing the movement of 0.09% while prices dropped by 4.58% in one month period but sentiments look firm for the near term as support seen from Malaysian palm oil futures which rose more than 1% marking a gain for a third straight session, as robust exports in the first half of September and growing concerns over sluggish production boosted prices.
 
*ICE Canola Futures rose following soyoil gains and were further supported by tight supplies. Statistics Canada cut its canola production estimate on Tuesday to a 13-year low, due to drought. StatsCan’s lower-than-expected revision still underpins canola prices, a trader said. November canola gained $7.50 to $879.80 per tonne.
 
*US Soybeans Futures firmed, though gains were limited as canceled exports from the hurricane-damaged US Gulf weighed on futures.
 
*India's Palm Oil imports rose in August due to "the much-improved RBD import margins vs soft oil, the change in import policy for RBD & the supportive Indonesian export duty and levy structure," according to Marcello Cultrera, institutional sales manager and broker at Kuala Lumpur-based Phillip Futures.
 
*India's palm oil imports in August jumped by more than 61% on the month to 750,134 mt, according to data published by a national trade body, as bulk buyers looked to pad up edible oil inventories ahead of India's upcoming festival season.
 
*Lower duties in India and Indonesia, along with tighter domestic stocks ahead of the festival season, have contributed to the sharp increase in imports over the last month
 
* Due to relaxation in policy for imports of RBD Palmolein -- refined bleached, deodorized palm oil -- deliveries of refined palm oil into India increased many-fold to 187,471 mt in August and are likely to continue to see similar volumes in the coming months, the SEA of India said in its monthly imports press release on Sept. 15.
 
*Imports of soft oils, mainly soybean and sunflower oil, decreased in August due to high prices, SEA said. Soybean Oil, India's most imported soft oil, fell sharply by 51% on the month to 182,459 mt.
 
*Port stocks of edible oils have slightly increased by 55,000 mt to 1.75 million mt as of Sept. 1 from 1.69 million mt as of Aug. 1, monthly data from SEA showed.
 
*India is the largest buyer of vegetable oils in the world and imports about 15 million mt of vegetable oils annually, of which palm oil accounts for 8 million-9 million mt.
 
*On Sept. 10, India's Ministry of Finance reduced the base import duty applied to all crude vegetable oil uniformly to 2.5%. Earlier, CPO used to be charged a base duty of 10%, while crude soybean oil and crude sunflower oil were charged a base duty of 7.5%.
 
*This latest restructuring of taxes has reduced the effective tax rate for CPO, crude soybean, and sunflower oils to 24.75% from the earlier 30.25% in a bid to further ease high edible oil prices in the country.